1500 Problem 20-1A Production cost flow and measurement journal entries P1 P2 P3 P4 Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching. All direct materials enter production at the beginning of the cutting process. The following information is available regarding its May inventories Beginning Ending Inventory Inventory $ 6,000 $ 1290 Work in process inventory Cutting 51.500 Work in process inventory-Saching 63.300 60.500 Fished goods inventory 20,100 8.250 The following additional information describes the company's production activities for May Direct Materials Factory Overhead actually Raw materials purchased on credit $ 25,000 Indirect med $6.000 Direct mained-Cutting 21,750 Indirect labore 55.000 Direct materials used Saching 0 Other the cours 47,000 Direct Labor Factory Overhead Rates Desber-Cutting $ 15,600 Ong 150% of directed Debor-Suching 62.400 Setching 1205 Tollectory payroll adinah 133,000 Sales $256.000 Required 1. Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold Check (1) Cost of goods sold 5213,005 2. Prepare summary journal entries dated May 31 to record the following May activities: (a) raw materials purchases, (b) direct materials usage. (c) indirect materials usage, (d) direct labor costs incurred. (e) indirect labor costs incurred, payment of factory payroll. (e) other overhead costs (credit Other Accounts). ()overhead applied, co goods transferred from Cutting to Stitching. ) goods transferred from Stitching to finished goods, cost of goods sold, and I sales